By: Laura Reginelli
Paying for college is enough to make even the wealthiest families feel the pinch. Many wonder when they should start to save for the children’s college expense. The answer is as soon as they are born, if not earlier! As discussed previously, the sooner one starts saving, the more return they will see. So if you invest even small amounts now, you will see better returns than those who start saving ten years later than you.
So where to begin you must be wondering- well there are several resources you can turn to in order to fulfill this duty.
· Consider taking on a 529 plan. According to savingforcollege.com, a 529 plan is “an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs.” These allow you to start saving early and they do not limit what college you have to send your child to.
· Don’t panic if you can’t pay the full bill of tuition, many people have to seek outside assistance. There are several loans that are available solely for educational purposes for both independent and dependent children.
· Do not forget about saving for your retirement. Although planning for you children’s college tuition is important, you can obtain a specialized loan, unlike retirement funding.
· The burden shouldn’t only fall on the parents. Make sure your children study hard, seek out scholarship opportunities and apply to a wide array of institutions.
Although funding college may be a scary endeavor, it is important to break it down piece by piece and consider all the alternatives. So just remember, it pays to start early and seek out the options that are available for funding higher education.